On 1 January 2014, Magic Co acquired an item of plant for $500,000 and depreciated the asset at 10% perannum-straightline (nil residual value). At the 31 December 2020, the asset has a fair value less cost to sell of $100,000 and a value in use of $120,000.

What is the amount of impairment on the asset for the year at the 31 December 2020?

Select one:

A. $0

B. $120,000

C. $30,000

D. $50,000